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Problems Getting a Mortgage in Birmingham

Usually, there are a lot of questions within the mortgage industry that crop up regularly with our Mortgage Advisors in Birmingham. So we have compiled a list to ease client worries:

Childcare costs

In regard to Childcare costs, you normally aren’t at risk of getting turned down for a mortgage, most people who remortgage in Birmingham would tend to have children due to moving home in Birmingham for a bigger space. It is taken into consideration however, due to the costs being very expensive so you may be granted a lower mortgage amount than other applicants who have the same income but no children.

Childcare costs are assessed on the basis that they’ll be put through as a loan or credit commitment. Even without childcare costs being involved, parents may still be granted a lower mortgage than applicants who don’t have children. This is down to the factor that Lender’s affordability calculators automatically factor in some of the additional expense that normally comes with children.  

Some lenders will also consider aspects like Child Benefits and other state Benefits. This can squeeze up the maximum mortgage allowable sometimes.

Mortgage following Divorce/Separation

A house isn’t bought with the expectation of divorce or separation but this does often happen and as such the situation requires certain files and documents needing changing including name changes on a mortgage and the matter of whether a person is allowed two mortgages.

Names can be removed and a person can be allowed two mortgages but will require thorough Mortgage Advice in Birmingham. If you end up receiving maintenance this can sometimes be used as part of the assessable income for a mortgage.

Starting a new job – Can I get a Mortgage?

This is more straightforward than most people would believe. Some lenders require you to have been in work continuously for a certain period of time whereas others are more lenient with this. You are even able to get a mortgage if you are in your first job. If you are at the stage of starting a new job in the near future than you may be eligible to obtain a mortgage if you have a signed contract and job offer letter. Although it’s important to remember gaps in employment may be a problem with lenders – probationary tend to be okay.

Proving your deposit

Anti-Money Laundering precautions have tightened up in recent years. All lenders when evidencing your deposit will ask you where your money has come from – Solicitors and Estate Agents may also ask this. This means that any large cash deposits which are deposited will be questioned and may lead to your application being rejected which is usually very common for first time buyers in Birmingham.

It is not unusual for some of your deposit to be a ‘Gifted Deposit’. The person who chooses to gift your deposit will need to confirm in writing that it is, in fact, a gift rather than a loan.

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UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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